LATAM and CHEP contract signing ceremony (from l > r): Julian Diaz (VP Operations Planning and Continuous Improvement, LATAM), Dr. Ludwig Bertsch (President, CHEP), Carlos Larrain (Senior VP Operations and Services, LATAM), Orlando Gaete (Senior Manager Operational Support, LATAM), Adam Barrington-Spencer (Head of Sales and Account Management, Americas, CHEP), Don Jacobs (Director, Sales, Marketing and Account Management, CHEP)

As announced today (24 August), LATAM Airlines Group, Latin America's largest airline company, has awarded the management of its containers and pallets to CHEP Aerospace Solutions. Read more>

Craig Smyth will head ground handler Wordwide Flight Services
Craig Smyth will head ground handler Wordwide Flight Services

CargoForwarder Global was informed yesterday evening that the new owner of Worldwide Flight Services (WFS), Platinum Equity which has its headquarters in Beverly Hills, California - has appointed Craig Smyth to take over as CEO of WFS as of August 29th.

 

Takeover from French into British hands
It has been speculated after the sudden departure of Olivier Bijaoui as CEO a couple of months ago whether his successor would be chosen in-house or whether the American owner would look elsewhere. Read more>

Cargo handling at Dammam's KFIA
Cargo handling at Dammam's KFIA

Singapore's biggest ground handler at Changi Airport, Sats, is investing about S$40 million (US$29.6m) to build new air cargo facilities at King Fahd International Airport (KFIA) in Dammam, Saudi Arabia - the first foreign firm to enter the market, The Straits Times reported.

 

The move is part of overall plans to expand Sats' reach in the Asia Pacific and Middle East, its chief executive officer and president Alex Hungate said, adding that a wider network will allow Sats to offer airlines more and faster connections which is key in an increasingly competitive market. Read more>

PACTL’s business is thriving
PACTL’s business is thriving

Ground handler Shanghai Pudong International Airport Cargo Terminal (PACTL) remains on its expansion course. Shanghai’s leading handling firm reports an increase in tonnage of 2 percent y-o-y for the first seven months of 2016.

 

According to PACTL, it was the best result ever for the first seven months of any year in the 17-year history of the service provider. In total, from 1 January to 31 July, exactly 919,461 tons of air freight were processed through the agent’s large terminal at Pudong International.

Read more>

Russian delegation member Oleg Demidov  -  pictures hs
Russian delegation member Oleg Demidov - pictures hs

In their latest round of bilateral air traffic negotiations that were held last week in Berlin, Russian and German traffic officials finally set aside the main obstacles limiting the flight rights of their cargo airlines. The extensive settlement ends a long period of exhausting Ping-Pong played by both sides, which started in 2007 when Russia suddenly banned Lufthansa Cargo from crossing Siberian skies, embarrassing the German side.

 

Happy delegates
It was a rare sight during the complicated and conflict-laden Russian-German air traffic negotiations in Berlin last Thursday: After the meeting ended, only happy faces were seen on both sides. For instance that of Russian delegate Oleg Demidov: “We are very much pleased and happy with the result,” he told CargoForwarder Global exclusively;... Read more>

AF-KL Cargo have seen better days
AF-KL Cargo have seen better days

The signs are that the air cargo market has now started a small, but noticeable upswing.
This was particularly noticeable in the June figures issued by IATA whereby it is stated that their was a 4.3% rise in freight tonne kilometers (FTK) in June alone which represents the fastest growth rate of the past fourteen months.
This growth however was not reflected in the first half-year results of Air France-KLM Cargo which continues to suffer from disappointing results.

 

2016 first half year slightly better than 2015
The total operating loss for the period January to June was €116 million, which although being a heavy loss, was somewhat better than that of the same period 2015 - €141 million. Read more>

China will remain the world’s largest retail e-commerce market, with sales expected to top US$899.09 billion this year, representing almost half (47.0%) of digital retail sales worldwide.

 

According to the latest worldwide retail forecast by U.S.-based eMarketer, the country this year will surpass the U.S. to become the world’s largest retail market with total sales of US$4.886 trillion, compared with US$4.823 trillion in the U.S.
With China having one of the most developed e-commerce markets in the world, eMarketer expects purchases made digitally will represent a globe-topping 18.4% of the country’s total retail sales this year.

Read more>

LH Cargo exects Alexis von Hoensbroech….
LH Cargo exects Alexis von Hoensbroech….

In a letter sent to their agents, Lufthansa Cargo has announced a rate increase for standard freight effective September 1, 2016. The Frankfurt-headquartered carrier is the second major freight airline upping prices, after Emirates SkyCargo’s decision published on 8th August to demand more money for flying air freight. Others might follow to curb the global trend of profitability decline.

 

With their individual price initiatives both Emirates and Lufthansa Cargo are rearing up against the persistent trend of falling rates in a challenging market distorted by high capacity vs moderate demand. Explains the German cargo carrier in their announcement to the agents: “Insufficient tonnage and overcapacities in many markets have caused rate levels to disproportionately drop at a fast pace. In order to profitably serve flight connections and make key investments for you, we have been making great efforts to improve our cost structure. In the short term, however, we must also ensure the profitability of our services.” Read more>

IN BRIEF, THE LATEST AIR FREIGHT INDUSTRY NEWS. Read more>

There is still hope in the industry that air cargo tonnages may stabilize somewhat by the end of this year.
The recent figures published for June show a strong emergence in both the incoming and outgoing air cargo in the Asia Pacific region.
However, the storm may have just abated for a while, but is definitely not over.
Even a further rise in tonnages might not be of much help to carriers who are suffering under a continued rate war and low yields. Read more>

Alibaba headquarters in Hangzhou  -  company courtesy
Alibaba headquarters in Hangzhou - company courtesy

The China, Hangzhou-based Alibaba Group which is said by some to be alongside Amazon as the number two e-commerce giant, has delivered what they term as “outstanding” results for Q2 2016. Read more>

Luxasia chairman Patrick Chong (left) with former SingPost CEO, Wolfgang Baier.
Luxasia chairman Patrick Chong (left) with former SingPost CEO, Wolfgang Baier.

Singapore Post's (SingPost) former chief executive officer Wolfgang Baier has joined Luxasia Group, a Singapore-headquartered fragrance and cosmetic distributor company, which is eyeing further expansion in e-commerce transactions.

In a statement, Luxasia said Dr Baier, 42, has been appointed group CEO with immediate effect, while founder-owner Patrick Chong, who is in his 60s, will become chairman.
Dr Baier's appointment will be key to Luxasia's overall growth strategy, and comes after a year's search for a CEO, said the firm. Read more>

President of UPS China, Richard Loi
President of UPS China, Richard Loi

A white paper presented by United Parcel Service (UPS) this month, suggests that China's manufacturing sector could further improve its performance through developing a diversified customer base, attaching more importance to logistics, and selling less unfinished goods than finished ones.

The report, presented in Shanghai by Richard Loi, president of UPS China, said that: "Chinese export manufacturers should learn from industrial leaders who have implemented successful strategies to achieve better business performance and growth."
The report noted that Chinese export manufacturers are facing challenges from both demand and supply: two of the most commonly-cited challenges are increasing competition from Chinese companies and decreasing demand from Chinese customers. Read more>

In last week’s issue of CargoForwarder Global we published the first part of an article on a new concept for “capacity forecasting” which has been set up by Transmetrics. In this issue we present the second part with its conclusion. Read more>

Whereas many of the global air cargo carriers are facing strong headwinds, two others are flying with the wind strongly behind them and producing one good result after the other.
Namely, Deutsche Post-DHL and the Memphis based Federal Express (FedEx).

 

DHL reports massive Q2 revenues
DP-DHL ended their second quarter with a net income which was up 66 percent year-on-year although revenues for the same period were actually 3.5 percent below those of the same period in 2015. Read more>

Nippon Express teams up with Alibaba. Courtesy: Nippon Express
Nippon Express teams up with Alibaba. Courtesy: Nippon Express

Japan's largest logistics provider, Nippon Express has concluded a deal with e-commerce giant Alibaba Group Holdings, under which the Japanese shipper will transport goods from companies doing business on Alibaba's TMall.com platform to China, while an Alibaba affiliate will handle home delivery, Nikkei news agency reported.
Goods can either be flown when ordered or shipped by sea in advance and stored in warehouses.

Read more>

Denis Ilin has left AirBridgeCargo for unknown reasons  -  photo: hs
Denis Ilin has left AirBridgeCargo for unknown reasons - photo: hs

Russian freight carrier AirBridgeCargo (ABC) loses a great leader. As the carrier announced today (1 August), Denis Ilin has given up his post as Executive President. Reasons for his sudden and widely unexpected departure were not delivered by the Moscow-based management. Neither do they indicate in their release who will succeed him or act as interim helmsman.

 

Under Denis’ stewardship, AirBridgeCargo embarked on a growth trajectory, seen by the constant increase of the freighter fleet and the successive network expansion. Only four weeks ago, ABC started serving Phnom Penh, Cambodia, upping the number destinations served in South East Asia to eleven. Shortly before, effective May 23, the carrier introduced a weekly Houston-Abu Dhabi-Moscow flight. The list of route expansions is almost endless. Read more>